Mexico Could Pay for Border Wall Through 20% Border Tax

Days following his inauguration, President Donald Trump has been busy enacting the policies he proposed during the presidential campaign. This includes the construction of the border wall that Mexico will pay for.

Although Mexican President Enrique Pena Nieto has maintained that his government will not pay for the border wall, it seems Trump’s administration has found an effective way around this. Earlier today, the White House suggested imposing a 20% tax on all products coming from Mexico. The collected tax revenues will then be used for the construction of the wall.

Sean Spicer, the White House press secretary was the one who disclosed the details of the proposed 20% border tax. According to the official, it could be introduced as part of the country’s existing policy on taxing imported goods from countries that have a trade deficit with the U.S. As an example, Spicer noted that with $50 billion worth of imports from Mexico in a single year, the taxable amount, which is $10 billion, can be used to fund the construction of the border wall.

Spicer, however, clarified that the 20% border tax is just a suggestion and not a policy proposal. It is only one of the various options that Trump can choose from to support the construction of the border. As noted by White House Chief of Staff Reince Priebus, Trump has a “buffet of options to choose from.”

The White House press secretary also said that the president will still have to discuss the matter with Congress before making a final decision.

But, even if the border tax idea gets rejected, the Trump administration will still find another way to make Mexico pay for the wall. Despite Nieto’s hesitation, Trump has maintained that Mexico will still end up funding the wall’s construction, even if this means using the U.S. resources to settle the initial payments.

Share this article

On The Goldwater you can comment anonymously, meaning you can post freely without being tracked or monitored. Your Identity is hidden from others.